Larry Fink warns stopping US data center construction risks recession
BlackRock CEO Larry Fink is sounding the alarm: if construction of new US data centers stops, it could push the country toward a recession.
In a chat with CNBC, he pointed out how crucial AI infrastructure is for jobs and economic growth, after BlackRock reported better-than-expected third-quarter earnings.
Local communities oppose new data centers
Communities are pushing back on new data centers because of higher energy bills, water use, and environmental concerns. With elections coming up, the debate is heating up.
Fink thinks much of this backlash is based on misinformation and reminds everyone that building these centers means more jobs and big investments in energy.
Analysts even predict that total AI-related capital expenditure could exceed $1 trillion in 2027, so pausing now could really set things back.